Exemption under sec 54ec and 54f for depreciable assets

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shrividya shankar (Querist)
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04 July 2014 Hi It is mentioned that exemption under sec 54ec and 54f is allowable for depreciable assets provided they are long term assets. My query is that we calculate capital gains on the entire block. Some of these assets could be long term and some could be short term. What are the rules to calculate quantum if exemption if the block has a mix of long term and short term assets? Thanks in advance

Nitin Bhuta

Nitin Bhuta (Expert)
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05 July 2014 In respect of depreciable asset Gain is always taxable at normal rate and never as long term capital gain. Only under once scenerio it is treated as long term when seller has claimed not depreciation in his income tax returns. Please don't claim it as long term capital gain it will create issues in your assessment.